President Chen Shui-bian said Tuesday that China's insistence on "One China" has been the main obstacle in cross-strait relations. The president was delivering his annual New Year's speech.

"The other side not only denies the existence of the Republic of China, but it aggressively oppresses and cuts off any opportunity for this sovereign country of Taiwan to be recognized internationally. This is the present situation for our country - China's military threat, diplomatic oppression, and economic war-- it doesn't matter if you're of the opposition blue or ruling green [political alliance]," Chen said.  

The President said that he welcomed any proposal for cross-strait peace, but any peace accord must be without preconditions. Chinese President Hu Jin-tao had called for peace in the Taiwan Strait in a speech in October.